Job creation: A big challenge for the government

Context: 

Creating jobs will be a significant challenge for India as the national unemployment rate continues to rise.

Slowdown in Job Creation 

• IT/ITeS Companies:  Leading the slowdown in job
• Startups: Slowing their recruitment plans creation. 
• Active jobs: About 2.25 lakh active jobs are open in the market as per hiring hiring firms, 1 lakh fewer than a year earlier. 

No Job Security:

• Tech Giants: Google, Microsoft, IBM, Meta, Amazon, Cognizant amongst others.
• Startups: like Byju’s and Ola amongs others
• Employed Fired: Thousands of employees fired in India.

Reasons behind Slow Job Creation: 

• Cost-cutting: Many companies resort to layoffs as a cost-cutting measure to improve their financial performance. 
  • This can be driven by factors such as reduced revenue visibility, tough macroeconomic conditions, or the need to optimize expenses.
• Over-hiring and reevaluation: Some companies may have hired excessively during periods of rapid growth or expansion, and later realized the need to reevaluate their workforce size. 
• Underperformance: In certain cases, companies attribute layoffs to the underperformance of their employees. 
  • When companies face financial pressures or when they seek to optimize their workforce, they may choose to let go of employees who are deemed to be underperforming.
• Technological advancements: Advancements in technologies such as artificial intelligence (AI) and data analytics can lead to automation and the need for specific skill sets. 
  • Companies may lay off employees who lack the required skills for these futuristic tech services.

Government Initiatives for Employment:

• Pt. DeenDayal Upadhyaya Grameen Kaushlya Yojana (DDU-GKY): Adding diversity to the incomes of rural poor families and catering to the career aspirations of rural youth. 
• National Career Service (NCS) Project: Transforming the National Employment Service to provide a variety of career-related services 
• PM-SVANidhi Scheme: Providing collateral-free working capital loans to Street Vendors, vending in urban areas.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): It aims to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood.
• Rural Self Employment and Training Institutes (RSETIs): Rural Self Employment Training Institutes,  an initiative of Ministry of Rural Development (MoRD) to have dedicated infrastructure in each district of the country to impart training and skill upgradation of rural youth geared towards entrepreneurship development.

Suggestions & Way Ahead for for Employment :

• Quality education to be the cornerstone for government and people people alike. 
• Favourable policy environment for businesses to start and grow with ease. 
• A bigger footprint in international markets will help. 
• Take the Skill development initiative undertaken by the government to be implemented effectively. 

News Source: The Newsindian Express